When someone decides to undertake and open a business account, whether to sell products or provide services, many important issues arise that need to be resolved.
And one of these issues is directly linked to the organization of business finances. After all, is it worth opening a legal account?
In this text we will explain everything you need to know about opening a business bank account and the advantages of having an exclusive account for your business.
What is a business account?
The business bank account is a bank account used especially for companies. To open it, you must have a registered company.
Normally, a business account has different functionalities than an individual account in order to meet the needs of companies, such as issuing bank slips or accessing a business card.
Differences between an individual and a business account
Before understanding better what this type of account is, it is important to explain the difference between a company and a person.
Any individual, from the moment he is born, is already an individual, who is initially identified by the Birth Certificate and later by the Individual Taxpayer Registry.
A legal entity is a company that offers services or products in exchange for payments.
From an accounting point of view, the Legal Entity is a different entity from the company’s partners, who are individuals. And because of that, there are different types of bank account.
5 benefits of opening a business bank account
For these reasons, the business account is the best option to keep your company’s accounting up to date. Below we list some of the advantages of choosing it:
The first advantage is precisely to make a more organized financial management of your finances and control your personal and business inputs and outputs in an easier way. It will facilitate not only the company’s accounting, but also its personal and family financial planning.
In the case of your company, with the entries and exits organized, it will be easier to do the bank reconciliation, comparing your bank statement with the company’s receipts and payments, since all transactions will be in the same place, and then just send it to the accounting platform or to your accountant.
Possibility of having more customers
It is very common for companies, mainly medium and large, to require a business account to pay for the services provided. In fact, some providers also require you to have a corporate checking account.
It is important to have this possibility to give more credibility when doing business and not run the risk of losing opportunities to bring new customers to your portfolio.
Access to benefits and other products
Being a client with a business account makes it possible to contract other financial products with your bank, such as cards, investments and consortia with differentiated benefits.
Good relationship with your bank
With the business account, you have another type of relationship with your bank and maintaining a good relationship is also an advantage when making loans, as it opens up the possibility of negotiating reduced rates.